Tax on savings - in between house purchase

[FakeAlaska]

I'm a fairly new house owner and after two years I would like to sell to release the funds to buy a bigger property with my parents (cost of living has been tough on us).

I'm planning on selling my property early and house sharing for a few months before buying with my parents. From the sale of my property I will have equity of around 50k that I want to put in a savings account whilst my parents sell their current home.

Any suggestions where the best place to place the 50k which will be tax efficient and quick access. I know NS&I premium bonds is up to 50k but I cannot see from the website whether I will be taxed on the amount?

I've got a call with a Wealth / Financial / tax advisor person next week but glad for any suggestions in the meantime

Thanks Mumsnet folk for your suggestions!

You are not taxed on the capital wherever you put it, only on the interest. Premium bonds don't pay interest, they pay tax-free prizes (if you're lucky).

Don't let the tax tail wag the dog. Tax is only on gains, so if you can earn enough interest to attract tax you're still better off even after paying it.

And you don't need a wealth adviser for a few months with £50k.

You will need a very good solicitor for the joint house purchase, to make sure all eventualities are considered.

Thank you @NoBinturongsHereMate for your replies. I feel a bit £ illiterate and take your advice on not letting the "tax tail wag the dog". Glad to know that the hard work to save that amount won't be impacted by putting it in bonds whilst we get our ducks in a line - Yes to a good solicitor.

Many thanks

50k - stick it in a 30 day notice account - check interest rates - not, so-called wealth advisor required.

don't risk/gamble your money vai investments, just stick it in a the highest interest rate rest from busingsociety or bank

I'd choose something via Money Saving Expert, I think they have a forum too. Premium bonds are fun.
As above, spend whay you would have done on a financial advisor on getting wills and powers of attorney set up along side you joint purchase.

for 6 months - 50k may result in not a penny, interest/win!!

you also have to have a full, clear month before you are added to the monthly draw!!

If you haven't got a cash ISA - I would put 20K into an easy access Cash ISA (ehere the interest is tax free) and the rest into a savings account. As a basic rate taxpayer, you have a tax free savings allowance of £1000 (reduces to £500 as a higher rate tax payer). Six months interest on 30K at 5% is £750. I like Kent Reliance as often have good rates but there are listings (eg Money Saving Expert) of current best rates. Premium bonds are fine (and the capital is safe) but you are basically gambling the interest on winning more in prize money during that time.

You can earn £1000 interest before you pay tax on it.

Premium Bond prizes are tax free.

And the interest on ISAs is tax free. So for 20k of it you could look for an easy access ISA with a good rate.

Thank you all for your helpful replies - I've obviously not been a very experienced saver so far in life 🙈 - didn't realise it was just tax on the interest, in some cases. Glad for the suggestions on the ISA in addition to NS&I. I'll spend some time on MSExpert to find some decent rates with easy access.

Appreciate your comments everyone.
🌻